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This paper examines cultural and leadership variables associated with corporate social responsibility values that managers apply to their decision-making. In this longitudinal study, we analyze data from 561 firms located in 15 countries on five continents to illustrate how the cultural dimensions of institutional collectivism and power distance predict social responsibility values on the part of top management team members. CEO visionary leadership and integrity were also uniquely predictive of such values.

This paper explains why GLOBE used a set of cultural values and practices to measure national cultures. We show why there is no theoretical or empirical basis for Hofstede's criticism that GLOBE measures of values are too abstract or for his contention that national and organizational cultures are phenomena of different order. We also show why Hofstede has a limited understanding of the relationship between national wealth and culture. Furthermore, we explain why Hofstede's reanalysis of the GLOBE data is inappropriate and produces incomprehensible results. We also show the validity of managerial samples in studying leadership. Finally, we explain why Hofstede's claim that GLOBE instruments reflect researchers psycho-logic reveals ignorance of psychometric methodologies designed to ensure scale reliability and construct validity. Journal of International Business Studies (2006) 37, 897–914. doi:10.1057/palgrave.jibs.8400234